NEWGATE FUNDING PLC - Irish Stock Exchange

Level: 8 – From: 8 – Wednesday, December 19, 2007 – 9:31 pm – mac8 – 3894 Section 03 : 3894 Section 03
Class A2b Notes shall be applied in the order set out in items (a) to (b) of the Series Pre-Acceleration
Principal Priority of Payments) on any Distribution Date immediately succeeding a Determination Date on
which all of the following conditions are met:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
the Trigger Ratio (as defined below) is satisfied;
the aggregate of the Balances of all Loans in the Series Portfolio that are 90 days or more in
arrears (including, for the avoidance of doubt, any Loans in that Series Portfolio in respect of
which Enforcement Procedures have commenced and the Property in respect of that Loan has
not been sold) on such Determination Date as a percentage of the aggregate Balances of all
Loans in the Series Portfolio does not exceed 20% (or such greater percentage agreed between
the Issuer and the Security Trustee and as notified by the Rating Agencies from time to time
upon the basis that such increase will not adversely affect the then current rating of the Notes
of the Series);
the balance on the Series Principal Deficiency Sub-Ledgers is zero;
the amount of the available Series Reserve Fund is not below the Series Reserve Fund Required
Amount;
the Liquidity Drawn Amount is zero; and
the aggregate Principal Amount Outstanding of the Notes is more than 10% of the aggregate
Principal Amount Outstanding of the Notes on the Issue Date.
The Trigger Ratio shall be satisfied if X/Y (expressed as a percentage) is less than P/2Q (expressed as a
percentage) where:
X =
Y =
P =
Q =
the Principal Amount Outstanding of the Class A1 Notes and the Class A2b Notes on the
Determination Date on which the Trigger Ratio is to be calculated.
the Principal Amount Outstanding of the Class A3 Notes, the Class B Notes, the Class Cb Notes, the
Class D Notes and the Class E Notes on the Determination Date on which the Trigger Ratio is to be
calculated.
the Principal Amount Outstanding of the Class A1 Notes and the Class A2b Notes on the Issue Date.
the Principal Amount Outstanding of the Class A3 Notes, the Class B Notes, the Class Cb Notes, the
Class D Notes and the Class E Notes on the Issue Date.
Series Post-Acceleration Priority of Payments
Following service of a Series Acceleration Notice, all moneys received or recovered by the Security Trustee
(or a receiver appointed on its behalf) in respect of the Series or by the Series Cash Manager on behalf of
the Security Trustee under the Security Deed (other than any collateral provided by the Series Interest Rate
Cap Provider, the Series Interest Rate Swap Provider, the Series Spread Cap Provider or the Series Currency
Swap Provider) will be applied following the enforcement of the security in respect of the Series in the
following order of priority (the Series Post-Acceleration Priority of Payments) (in each case only if and
to the extent that payments or provisions of a higher priority have been made in full):
(a)
first, in or towards satisfaction pro rata and pari passu according to the respective amounts thereof of:
(i)
the Series Pro Rata Amount in respect of any remuneration due and payable by the Issuer to
the Security Trustee under the Security Deed, the Intercreditor Deed and the other Transaction
Documents, and any costs, charges, liabilities and expenses incurred by the Security Trustee
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